Chapter 13 adding car payment into monthly payment

[Anonymous]

I'm getting ready to start a chapter 13 soon, I filed for 7 but it will be converted. Am I able to include some of my car or student loan payment into the monthly payment to the trustee? My truck is worth 26k, but I owe 30k.

[FireMedic1]

In Chapter 13 bankruptcy, you keep your property and pay back some debts in full and others in part through a three or five year repayment plan. If you want to keep your car in Chapter 13 bankruptcy, you must keep current on your car payments. If you are behind on your payments when you file, you can pay off the arrearage through your Chapter 13 repayment plan. Chapter 13 also provides a means to reduce your car loan in certain circumstances specifically, if your car is worth less than the amount of your loan. Your lawyer will know how to handle it. Good Luck!

Student loans are a whole different ball game.

[despritfreya]

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@Anonymous wrote:
I'm getting ready to start a chapter 13 soon, I filed for 7 but it will be converted. Am I able to include some of my car or student loan payment into the monthly payment to the trustee? My truck is worth 26k, but I owe 30k.

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Assuming you want to keep the vehicle, unless it is under a true lease, it will most likely be paid through the Trustee.  If you have not had the purchase money loan for more than 910 days prior to the filing date of your case,  your Plan will provide for the total balance due.  The Plan may or may not reduce the contract rate of interest to what is called the Till rate.    Discuss this with your atty.  Please note that there are very few jurisdictions that will allow one to pay a secured vehicle outside the Plan.  Why?  Because, if it is not paid through the Trustee, the Trustee does not make a few bucks.  My understanding is that Florida requires all debt secured by personal property to be paid through the Plan.  Again, discuss this with an attny.

The student loan is nothing more than a general unsecured debt - just like a credit card.  The only difference is that, in general, it is not discharged.  The lender will share in whatever pie is available to the general unsecured creditors.  Since the loan will survive the bk you will want to make sure the lender files a TIMELY proof of claim.  Please note that some jurisdictions do allow direct payments outside the Plan due to the nature of the loan but those jurisdictions are few.  I do not know if one of them is Florida.

You will work with your attny to formulate the Plan.  The first payment under the Plan will be due 30 days after you file/convert.

Des.

[Anonymous]

I have another question, if I want to sell my house during a chapter 13 and the house is in my wife and my name...can my wife pocket some of the proceeds? I have 200k equity in my home. Can she pocket 60k and then the rest goes into another home?

[Anonymous]

Thank you.

[Lawns1]

We have a chapter 13 100% repayment. We pay both car leases and our mortgage outside the repayment. The cars were current and the mortgage was 4 months behind at the time of filing. They put the 4 months into the chapter 13 and the normal payment outside. The student loans were inside the payment but we had to sign a form that once the 13 was completed we would get a bill from Nelnet regarding interest that accrued through the 13. He estimated it would be $500-$600.

[Anonymous]

Thank you

[sports1965]

You can pay your car outside of your BK13 plan in Florida!

[Anonymous]

Can I do a cramdown if I owe 30k and it's worth 26k. I'm trying to lower the payment. I was converted to a 13 from a 7 and the sad thing is budget is still super tight. Not sure how they figured I have all these extra funds. My lawyer said I should get a 7 and the trustee dug in so deep and was able to get it converted to a 13..I have a family of 6, and they pinched every penny out of me. So much for a fresh reset.

[despritfreya]

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@Anonymous wrote:
Can I do a cramdown if I owe 30k and it's worth 26k. I'm trying to lower the payment.

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Not if this is a purchase money loan AND you purchased the vehicle within 910 days (within just over 2.5 years) prior to filing the bk.

When did you purchase the vehicle? 

Was there a trade-in? 

If there was a trade-in did you owe money on the trade-in? 

If you owed money on the trade-in was the balance owed added to the purchase price of the new vehicle? 

What is your interest rate?

Des.